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NEB decision puts US energy needs first, union

OTTAWA, July 15, 2013 /CNW/ - Canada's largest energy workers' union is
very disappointed that the National Energy Board has rejected a request
by the last remaining refinery on Canada's West coast to be granted
"priority destination" status for shipments of Alberta crude.

"The NEB's decision will see Canadian oil flow to the US when a Canadian
refinery is being starved of supply," says Communications, Energy and
Paperworkers Union President Dave Coles.

Chevron had asked the NEB for its Burnaby refinery to be declared a
Designated Priority Destination (DPP) so that it will have enough crude
oil to operate. The company is attempting to meet its supply needs by
ensuring that it has first call on oil flowing through the
TransMountain Pipeline from Northern BC and Alberta. Chevron's Burnaby
refinery is running out of crude to process due to increased direct
exports to several refineries in Washington State, which use their
large size to overbid for pipeline capacity.

"The NEB's decision will allow large US refiners to continue gamming the
system at the expense of a Canadian refinery that has been relying upon
the pipeline as its primary source of supply for 60 years," says Coles.

"The NEB has created a distorted market to the prejudice of the only
Canadian refinery receiving oil from the TransMountain Pipeline", says
Coles. "But it is even worse than that as the NEB exacerbated the
Burnaby refinery's problems when it previously allowed TransMountain
Pipeline to siphon off a greater portion of scarce pipeline flows for
export."

"The NEB has failed to protect the public interest and ensure Canadian
energy security," says Coles.

The Communications, Energy and Paperworkers Union of Canada represents
35,000 members employed in oil and gas extraction, transportation,
refining, and conversion in the petrochemical and plastics sectors, and
110,000 members in total.